Lockton has released its July 2016 P&C Market Update, and after another year of underwriting profits and strong capitalization, the current property/casualty marketplace remains very competitive through the first half of 2016.

Two of the largest carriers—AIG and Zurich—have altered their underwriting approach or moved away from certain niches, but new capacity continues to come into the market, both domestically and internationally.

“With the exception of commercial auto, rates continue to decline across all other P&C coverages. ”Tweet This

With the exception of commercial auto, rates continue to decline across all other P&C coverages. This declining rate environment puts pressure on underwriters to seek growth from new business, creating a competitive dynamic across most products and industries. This is occurring even in today’s low-interest-rate environment, which requires even larger underwriting profits to hit targeted returns on capital.